Alliance Bank Malaysia Berhad
Indicative
Full Lot
Indicative price as of 02 Oct 2026, 4:25pm
Ask Yield to Worst
Bid Yield to Worst
Ask Yield to Maturity
Bid Yield to Maturity
Bond Issuer
Alliance Bank Malaysia Berhad
Guarantor
-
Announcement Date
13 Sep 2024
Issue Date
20 Sep 2024
Maturity Date
Perpetual
Years to Maturity / Next Call
Perpetual / 2.964
Modified Duration
2.736 @ 02 Oct 2026
Issue / Reoffer Price
100.000
Issue / Reoffer Yield
4.650
Coupon Type
Fixed
Annual Coupon Rate
4.650
Coupon Frequency
Semi Annually
Seniority
Junior Subordinated
Capital Structure
Additional Tier 1
Reference Rate
-
ISIN
MYBPZ2400227
CUSIP
YV6707066
Bond Currency
MYR
Total Issue Size
150,000,000
Min. Investment Quantity (Nominal)
MYR 1,000
Incremental Quantity (Nominal)
MYR 1,000
Bond Type
High Yield Corporate
Bond Sector
Financials
Bond Sub Sector
Banks
Issuer Credit Rating (S&P/ Fitch/ RAM)
***/ N.R/ AA3
Bond Credit Rating (S&P/ Fitch/ RAM)
***/ N.R/ A3
Shariah Compliant
No
Exchange Listed
No
Non-Viability Event
Following the occurrence of the following trigger events (each a "Non-Viability Event"), whichever is earlier:
(i) a Relevant Malaysian Authority (as defined below) notifies ABMB or its parent holding company and its subsidiaries (the "ABMB Parent Group"), if applicable, as the case may be, in writing that the Relevant Malaysian Authority is of the opinion that a write-off of the Capital Securities, together with the conversion or write-off of any other Tier 2 capital instruments and Tier 1 capital instruments which, pursuant to their terms or by operation of law, are capable of being converted into equity, or written-off at that time, without which ABMB or ABMB Parent Group (if applicable) would cease to be viable; or
(ii) the Relevant Malaysian Authority publicly announces that a decision has been made by BNM, PIDM or any other federal or state government in Malaysia, to provide a capital injection or equivalent support to ABMB, without which ABMB or ABMB Parent Group (if applicable), as the case may be, would cease to be viable.
A Non-Viability Event shall be deemed to have occurred on the day on which ABMB or ABMB Parent Group (if applicable), as the case may be, received the notification from the Relevant Malaysian Authority.
Capital Trigger Event
A Capital Trigger Event occurs when the Common Equity Tier 1 Ratio of ABMB, at the consolidated or entity level, or the Common Equity Tier 1 Ratio of ABMB's parent holding company ("ABMB Parent") at the consolidated level (if applicable), falls below 5.125% as determined and confirmed by BNM and/or ABMB and/or ABMB Parent (as the case may be) as of the relevant quarterly reporting date where the quarterly unaudited consolidated financial results of ABMB are published, announced and made publicly available, when such Capital Trigger Event occurs.
Upon the occurrence of a Capital Trigger Event, the relevant nominal value of Capital Securities shall be written-off (in whole or part) and other amounts owing under the Capital Securities (if any), together with the write-off or conversion of other relevant Tier 1 capital instruments which pursuant to their terms or by operation of law, are capable of being converted into equity, or written-off at that time, in order to restore the Common Equity Tier 1 Ratio of (i) ABMB (at the consolidated and entity level); and (ii) ABMB Parent (at the consolidated level), if applicable, to be at least 5.75%. Such write-off under the Capital Securities, together with the write-off or conversion of other relevant Tier 1 capital instruments, if any, shall be done on a pro-rata basis. No Equity Conversion
The Capital Securities shall not entitle the holders of the Capital Securities to receive any form of equity interest in the Issuer at any point in time and the Issuer is not obliged to allot or issue any shares to or for the account of the holders of the Capital Securities upon the occurrence of a Non-Viability Event or Capital Trigger Event or otherwise. s the case may be) of the Capital Securities will be cancelled.
Notwithstanding the above, if:
(i) the Capital Securities or any tranche thereof no longer qualify as Additional Tier 1 capital of the Issuer (in whole and not in part) for the purposes of BNM’s minimum capital adequacy requirements under any applicable regulations, and such disqualification has been confirmed by BNM in writing; and
(ii) the Issuer is not in breach of BNM’s minimum capital adequacy ratio requirements applicable to the Issuer, any Distribution payable after the date of notification from BNM of such disqualification ("Disqualification Date") may be deferred at the Issuer’s sole and absolute discretion but shall not be cancelled in accordance with the provisions of this paragraph entitled "Limitation on payment of distribution". Any portion of the Distribution payable on a Distribution Payment Date after the Disqualification Date, but deferred at the Issuer’s sole and absolute discretion shall start to become cumulative and compounding at the Distribution Rate from (and including) the period beginning on the relevant Distribution Payment Date ("Deferred Distribution Date") up to the date of actual payment of such deferred Distribution.
Dividend and Capital Stopper
In the event that the Issuer has not made a full payment of any Distribution on a Distribution Payment Date, then
(i) the Issuer shall not pay any dividends to its shareholders or make any payment or Distribution on any security or instruments ranking pari passu with or junior to the Capital Securities and which terms do not require the Issuer to make such interest payment or Distribution (the "Dividend Stopper"); and
(ii) the Issuer shall not redeem, purchase, reduce or otherwise acquire any of its ordinary shares, preference shares, securities or instruments ranking pari passu with or junior to the Capital Securities, or any securities of any of its subsidiary benefiting from a guarantee from the Issuer, ranking, as to the right of redemption of principal, or in the case of any such guarantee, as to the payment of sums under such guarantee, pari passu with or junior to the Capital Securities (the "Capital Stopper").
The Dividend Stopper and the Capital Stopper shall continue to apply, as the case may be, until either (i), (ii) or (iii) below is met:
(i) the Issuer has paid full Distributions scheduled for two (2) consecutive semi-annual Distribution Payment Dates or four (4) consecutive quarterly Distribution Payment Dates (as the case may be) after the application of the Dividend Stopper and the Capital Stopper;
(ii) the Issuer has irrevocably set aside in a separately designated trust account of the Issuer for payment to the holders of the Capital Securities, an amount sufficient to provide for the full Distributions scheduled for two (2) consecutive semi-annual Distribution Payment Dates or four (4) consecutive quarterly Distribution Payment Dates (as the case may be) after the application of the Dividend Stopper and the Capital Stopper and if upon determination of the amount of each of such Distribution there is a shortfall in the amounts set aside in such separately designated trust account with reference to the amounts so determined, an amount at least equal to such shortfall shall be paid or irrevocably set aside in the same manner; or
(iii) an Optional Distribution (as defined below) has, at the option of the Issuer and subject to BNM’s approval, been paid to all holders of the Capital Securities equal to, (without duplication of amounts previously paid to the holders of the Capital Securities) amounts outstanding (if any) on the Capital Securities which were scheduled to be paid in the twelve (12) months before the date of payment of the Optional Distribution.
The Issuer may, at its option andsubject to the Redemption Conditions being satisfied, redeem the Capital Securities (in whole or in part) at the Redemption Amount (as defined below) on any Optional Redemption Date (as defined below).
"Optional Redemption Date" means a date to be determined prior to the issuance. In the case of a tranche of Capital Securities under the AT1 Programme, a date falling no earlier than the fifth anniversary of the relevant date of issuance ("Issue Date"), and any Distribution Payment Date (as defined in the paragraph entitled "Interest/coupon payment frequency") thereafter.
First Call date on 20 September 2029.
"Relevant Malaysian Authority" refers to the following:
(i) BNM, jointly with PIDM, where a financial institution is a member institution, as prescribed under the Malaysia Deposit Insurance Corporation Act 2011; or
(ii) BNM, where a financial institution is not a member institution.
Upon the occurrence of a Non-Viability Event, ABMB is required to give notice to the holder of the Capital Securities (via the Trustee) and the Credit Rating Agency, in accordance with the terms of the Capital Securities, that as of the relevant write-off date:
(i) the write-off shall reduce:
(a) the claim of the Capital Securities in liquidation. The holders will be automatically deemed to irrevocably waive their right to receive, and no longer have any rights against the Issuer with respect to, any repayment of the aggregate principal amount of the Capital Securities written-off;
(b) the amount to be re-paid when a redemption is exercised pursuant to the Optional Redemption, Regulatory Redemption and Tax Redemption; and
(c) Distributions; and
(ii) the write-off shall be permanent and the full or part (as the case may be) of the principal amount of the Capital Securities will automatically be written-off to zero and the whole or part (as the case may be) of the Capital Securities will be cancelled.
Regulatory Redemption
If any tranche of the Capital Securities (in whole or in part) no longer, either immediately or with the passage of time or upon either the giving of notice or the fulfillment of a condition, qualify as Additional Tier 1 capital of the Issuer for the purposes of BNM’s capital adequacy requirements or any regulations applicable to the Issuer, then the Issuer may, at its option, and subject to the Redemption Conditions being met, redeem the Capital Securities (in whole or in part) at the Redemption Amount.
In the case of a partial redemption of a tranche of Capital Securities, the selection of the Capital Securities to be redeemed will be made by the Trustee on a pro rata basis, by lot or by such other method as the Trustee (with the agreement of the Issuer) will deem to be fair and appropriate.
"Redemption Amount" means in the case of an Optional Redemption, a Tax Redemption or a Regulatory Redemption, an amount equal to 100% of the nominal value together with any accrued but unpaid and uncancelled Distributions (if any) relating to the then current Distribution period (if any) up to (and excluding) the date on which the Capital Securities are redeemed.
"Redemption Conditions" means:
(i) the Issuer is solvent at the time of redemption of a tranche of Capital Securities or part thereof and immediately thereafter;
(ii) the Issuer:
(a) shall replace that tranche of Capital Securities or part thereof to be redeemed with capital of the same or better quality and the replacement of such capital is done at conditions which are sustainable for the income capacity of the Issuer; or
(b) demonstrates that its capital position is and can be sustained well above the minimum capital adequacy and capital buffer requirements as imposed by BNM after the redemption; and
(iii) the Issuer has obtained the written approval of BNM prior to redemption of that tranche of Capital Securities or part thereof.
Cash Flow Information